On my previous post, I discovered that after using Google Adsense’s Competitive ad filter my Ad impressions as well as CTR dropped dramatically. To be more specific, my revenue decreased by 90% after filtering undesirable ads from being displayed via the Adsense panels on my website. I have since removed the filters and have had very positive effects.Two days after the removal of the filtered websites from Adsense’s Competitive Ad Filter, my advertising revenue started pick up again returning to what it was originally. At first it was very hard to believe that the competitive ad filter could penalise my revenue stream, seeing how Google placed the filters there so that we could filter unwanted ads. However it was evident that removing the Competitive ad filter has increased my overall Google Adsense profit / revenue.

I have read many reports how filtering low CPC ads from being display would help you increase your over revenue. Unfortunately, it seems that Adsense optimisation team has decided to penalise users when they utilise this feature of Adsense. Although it may seem unlikely that I was penalised, I actually have proof to show that Adsense Optimisation Team had noticed my usage of the Competitive Ad Filter and they also sent me a “Tip” suggesting that I should not use the filter.

Although the report was generated automatically, it shows that the Adsense Optimisation Team actually recommends you not to use it. So basically I have gathered the following facts so far:

Adsense Optimisation Team recommends that we don’t filter ads as it “may” affect revenue

After using the Adsense Competitive Ad Filter, my revenue dropped by 90%

With the above facts, we can safely say that although the Adsense Competitive Ad Filter helps increase your Cost Per Click (CPC), you will almost certainly get penalised by Google. Your ads impression will drop and your CTR will drop with it (I am guessing because your Adsense boxes are no longer filled) hence affect your overall adsense revenue.

This may happen because Google wishes to retain their customer base (of low quality ads) by stopping you from filtering their ads. It may also happen if most of the ads which fits your website (or mine in this case) are spam related ads, which you ended up filtering out. I would recommend that you give the filter ago first as the results may differ from website to website and it will also depending on your the niche you are targeting.

Note: Don’t have more than about 40 websites in the filter, from my experience regardless of what niche you target you will most likely get penalised by the system. I would rather have some clicks with low CPC than have no clicks on high CPC.